The World Bank is working with the Marshall Islands government to provide improved telecommunications services and boost mobile phone access.
It is the first project under the Bank's first Country Partnership Strategy.
The Bank says the Marshall Islands is one of the world's least connected countries, and telecommunications access is low.
Just two percent of people subscribe to internet services, and only about one-quarter has a mobile phone.
The project aims to help the country attract new investment in telecommunications and bring down service costs, including through increased competition.